Many Aussie personal loan lenders have slashed rates over the last 12 months, with many hitting all-time lows. But the truth is, some rates remain stubbornly high, which means that you could be missing out on a better deal by not shopping around.According to the Mozo database, the lowest unsecured personal loan variable rate for low-risk customers sits at 3.15% (4.10% comparison rate*) while the highest rate skyrockets to 15.99% (16.29% comparison rate*). That’s a massive 12.84% difference! You may be asking yourself, with the curveball of COVID-19 is it still possible to get your hands on one of these low interest personal loans? If you have a solid credit history and a steady income, then the answer is yes! So if you need a hand to start your search for a killer personal loan to avoid paying too much in interest, we are here to help. Scroll down for some of the top low interest personal loan options right now.
Planning some home renos, a wedding or upgrading your car in 2021? You may need a loan to cover the cost. That’s where a low-rate personal loan or car loan might be handy. In fact, it could be a lifesaver when it comes to covering a large cost and could also save you from forking out too much in interest repayments. Because let’s be real, who wants to do that?Right now on the Mozo database, the average interest rate for personal and car loans look like this:
Since the federal government’s decision in late November to extend its HomeBuilder scheme, a growing number of Australians have been pouring some serious money into home renovation projects like garden landscaping and room remodelling.HomeBuilder, which began in June last year, involved handing out $25,000 cash grants (now reduced down to $15,000) to eligible households to cover the cost of home building or renovations. This scheme was introduced to help boost activity in the housing construction industry, and has so far seen a huge takeup in interest. According to Treasury figures, 75,143 households applied as of 31 December, which is almost double of what was initially predicted.
If there’s one thing 2020 gave the average Aussie, it’s a change in perspective when it comes to money. Not only did we take saving more seriously, but one in four Aussies vowed to rid themselves of debt. “Historically, Australians haven’t been afraid of debt, particularly through our love of credit cards. We’ve racked up debt with the assumption that job security and a steady paycheck is a relatively safe bet, but a global pandemic has tipped that notion on its head as unemployment soars,” said Mozo Director, Kirsty Lamont. “For many people, Covid-19 has been a wake up call to get their finances in order, and eliminating debt is a key part of that.” If you’ve never had to take a serious look at your debt before, it can seem a little daunting. So to equip you with skills you need to make your debt disappear, we’ve listed our top four tips below.
Whether you’re planning on renovating your home, going on holiday or consolidating debt, there’s no shortage of personal loans to help you get things off to the right start. And with so many digital lenders out there, much of the lengthy wait times and paperwork that were once par for the course when borrowing have been cut in half.
Chances are we’ve all picked up a new hobby during the pandemic, whether it’s sewing or baking. For a big portion of Australians though, their newest obsession is with home improvement projects. New research from retailer Amart Furniture found over a third of Aussies used the extra time spent indoors to update and restyle their homes. But rather than knocking down parts of the living room or bedroom for large-scale renovations, 58% of respondents said they opted to buy new furniture instead. In fact, furniture sales have been steadily increasing since the start of COVID-19. Couches (30%), chairs (28%), coffee tables (28%), desks (27%), and mattresses (24%) top the list as the five most popular items Australians purchased over this period, according to Amart Furniture. “So many of us can relate to making changes to the way we live in our homes at the moment, whether that’s creating a new office space from scratch or turning our living rooms into makeshift restaurants, cinemas and gyms,” Amart Furniture’s general manager of buying, Steve Norman said.
Summer’s looking a little different this year. And for many Aussies it means planning a holiday in their own backyard rather than jetsetting overseas. But with Christmas spending season around the corner and many wallets feeling tighter, covering the cost of an Australian trip may seem like a little more of a stretch. That’s where a personal loan might help you. “Using a personal loan to cover an Aussie adventure could be a great way for travellers to spread the cost of their trip,” Mozo Director, Kirsty Lamont said. “Unlike credit cards, personal loans offer a more structured repayment plan for borrowers with weekly, fortnightly or monthly options. Not to mention, customers could snag a more competitive interest rate, with some personal loan offerings sitting below 5%”So why not just use a credit card? Well, currently on the Mozo database, the average secured personal loan rate sits at 7.96% and the average unsecured personal loan rate is 10.26%. Alternatively, the average credit card rate is 16.35%. While a credit card may give you the flexibility when it comes to the potential cost of a trip, a personal loan may end up saving you in the amount you pay in interest.
Ready to leave 2020 in the past and have a full on 2021 refresh? Join the crowd! While we can’t help you with things like getting fit, finding love or kicking lingering lockdown habits, maybe home renovations is on your list of next year’s to-dos.Depending on whether you are planning a whole house makeover or simply sprucing up the kitchen, the cost of your renovation is essentially up to you and your budget. If you’ve collected all your 2020 savings and you have enough to cover your planned reno, well done! But if not, you might want to consider your lending options to cover some of the costs: one being a personal loan. “It’s no secret that renovations can be expensive, so Aussies looking to give their home a facelift need to get savvy when it comes to covering what can be a hefty price tag,” Mozo Director, Kirsty Lamont says. “With some personal loan rates sitting below 4%, now could be the time to take advantage of low rate lending. But, it’s important to stick to a budget when borrowing for renovations and to make changes that will increase the overall value of the property when it comes time to sell.”